The UK magazine, Energy in Buildings & Industry, in its January 2013 issue provides the following report on how landlords are prepared for the upcoming changes to require landlords from 2018 to have their properties reach a certain standard before renting. What is also worrying in this article, is the general attitude towards sustainability.
Commercial landlords not ready for outlawing of inefficient property
Many commercial landlords are still not prepared for the outlawing of all inefficient properties, according to a new survey.
The Energy Act 2011 states unequivocally that the government will make it illegal from April 2018, to let residential or commercial properties that do not meet a minimum Energy Performance Certificate (EPC) rating of E. For the government to retreat from that position would require new primary legislation.
Around 1 in 4 commercial buildings are estimated to merit one of the lower (F or G) ratings. However well over half (55 per cent) of landlords responding to a survey by GVA assign no monetary values whatsoever for sustainability within their investment appraisals. The vast majority (80 per cent) of landlords believe this is due to the continuing failure by commercial valuers to incorporate energy issues within their assessments.
Over the past year, the proportion of commercial landlords who consider sustainability issues to be ‘very important’ has halved. It has dropped from 1 in 5 to just 1 in 10. This is despite being aware that sustainability issues are likely to affect property performance with obsolescence and tenant retention.
Asked how sustainability was likely to affect property performance, respondents observed it would have the greatest affect on obsolescence. Tenant retention was placed second, while other factors such as rental growth, yield levels, rent levels and voids received lower recognition.
Investors continue to believe that city centre offices and office parks feel the greatest impact from sustainability issues.
Energy in Demand - Sustainable Energy - Rod Janssen 
An interesting article, which makes clear that whilst for the most gas guzzling commercial premises, it will simply be illegal for landlords to let these from 2018, there are still many so-called “property professionals” who are simply acting as though this will never happen. it makes you wonder just how “professional” some of these people truly are.